CWB.PR.C Below Expectations On Decent Volume

Canadian Western Bank has announced:

that it has closed its domestic public offering of non-cumulative 5-year rate reset First Preferred Shares Series 7 (Non-Viability Contingent Capital (NVCC)) (the “Series 7 Preferred Shares”). CWB issued 5,600,000 Series 7 Preferred Shares at a price of $25 per share to raise gross proceeds of $140 million. The offering was underwritten on a bought deal basis by a syndicate led by National Bank Financial Inc. Net proceeds from the offering will be added to CWB’s capital base and used for general corporate purposes and are expected to qualify as Tier 1 capital for CWB.

The Series 7 Preferred Shares will commence trading on the Toronto Stock Exchange today under the ticker symbol CWB.PR.C. The offering of Series 7 Preferred Shares was completed by way of short form prospectus dated March 22, 2016, and filed in all provinces and territories of Canada.

CWB.PR.C is a FixedReset, 6.25%+547, NVCC, announced 2016-3-10. It will be tracked by HIMIPref™ but has been relegated to the Scraps index on credit concerns.

The issue traded 692,786 shares today (consolidated exchanges) in a range of 25.20-38 before closing at 25.30-33, 4×3. Vital statistics are:

Maturity Type : Call
Maturity Date : 2021-07-31
Maturity Price : 25.00
Evaluated at bid price : 25.30
Bid-YTW : 6.03 %

The performance of this issue may be considered somewhat disappointing, given that TXPL is up 5.32% between the March 10 announcement date and the March 31 closing date – although a certain amount of underperformance is expected in a rising market due to negative convexity.

2 Responses to “CWB.PR.C Below Expectations On Decent Volume”

  1. FletcherLynd says:


    Is there a possibility that the CWB issues could be added to


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